Where to pay tax? UK or Ireland.

[bfen]

Hi,

I’ve had a read through a lot of forum posts here and found some really valuable information. I’m hoping I might be able to get some advice about a situation I’m in that has my head spinning with the contradictory info I’ve read and heard.

Over the past two and a half years, I’ve worked for a UK business. However, I’m based in the Republic of Ireland, working from home to do this role. I travel to the UK office for three days each fortnight.

Since I started working from abroad for the UK Company, I’ve paid my PAYE and NI to the UK. However, I am an Irish resident and am slightly concerned that a tax bill could be hiding in the wings somewhere for the future.

I understand the “double taxation treaty” is in place between the UK and Ireland to avoid double taxation occurring.

However, I’ve also read that the employee is liable to pay the higher tax contribution of the two countries. If this is the case, then I’d expect to owe the Irish government monies due to them having higher rates (at least with the new universal social charge).

I’d imagine this situation is becoming more common an increasing number of people working-from-home and traveling between countries these days. However, I am struggling to find much in the way of definitive answers to where to pay tax.

Any help or advice would be really appreciated. Thanks.

 

[srase]

You must submit an Irish tax return declaring your UK salary along with the UK tax paid.

You would then be taxed on this income in Ireland with a credit for the UK tax already paid.

There is a relief known as "transborder relief" which you can claim which will exempt the UK employment income being liable to Irish tax. In general, you can claim this if the employment lasts for longer than 13 weeks and you are present in Ireland at least one day per week.

You must still submit a tax return and claim this relief on the return.

 

[Ricktap]

Hi,
I have a similiar sort of query about tax and transborder relief. For part of 2015 I worked in the North so am having to fill out Form 11 and declare the foreign income. I qualify for transborder relief since I was back home at weekends. I have paid UK tax already. But when I input the foreign income on Form 11 it is giving me a 'extra' tax bill of over 3K. I am confused since I have paid PAYE on the 2015 earning in ROI and then also on UK earnings. Why this extra tax bill if the point of transborder relief was to avoid double taxation?

thanks for any help on this.